The retail sector saw a significant contraction in the first quarter of 2025, with total sales dropping by 15% year-on-year to MOP17.58 billion, according to the Statistics and Census Service (DSEC).
The decline stems from a high comparison base in the previous year, when retail activity surged after the post-pandemic economic rebound.
Notable year-on-year declines were recorded in sales of leather goods (-24.2%), cosmetics and sanitary articles (-22.3%), department stores (-18.8%), and watches, clocks and jewellery (-17.3%). In contrast, motor vehicle sales bucked the trend, rising by 12%.
After adjusting for inflation, the overall sales volume index dropped by 17.8%.
Quarter-on-quarter comparisons also pointed to a cooling market, with retail sales falling by 4.6% compared to Q4 2024.
Communication equipment saw the sharpest drop (-38.8%), while categories such as Chinese food products (+9.7%), watches, clocks and jewellery (+6.1%) and supermarkets (+5.6%) recorded gains.
The downturn comes as lawmakers express growing concern over the survival of small and medium-sized enterprises (SMEs), particularly amid signs of weakening consumer spending.
Retail sales in Q1 accounted for just 86% of the same period in 2019, underscoring the fragility of the sector’s recovery.
Meanwhile, data shows that 53.7% of retailers expect a further decline in sales in Q2, with only 8.5% predicting growth.
While 62.5% of businesses foresee stable pricing, more than half anticipate a continued slowdown, reinforcing industry calls for stronger support measures.
Recently, the government has announced a revised gross domestic product (GDP) figure of MOP99.76 billion for the first quarter of this year, with spending on non-gaming by visitors contributing MOP19.62 billion, or MOP1,989 per capita.
According to the DSEC, both indicators showed a downward trend, with a year-on-year decline of 1.3% in GDP and a 3.6% decrease in non-gaming spending. LV
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